October 12, 2006

...AND LOWER...:


As oil prices fall, OPEC wavers on production cuts
(SHAWN MCCARTHY, 10/12/06, Globe and Mail)

Amid new signs of weakening demand, OPEC ministers Wednesday were unable to agree on production cuts aimed at propping up prices — and the delay is damaging the cartel's credibility.

Several ministers from the Organization of Petroleum Exporting Countries have spoken of an informal agreement to cut 1 million barrels per day of production, though analysts Wednesday were unsure whether the reduction would come from actual production or the official OPEC quota, which is higher.

Adding to the uncertainty was the silence from Saudi Arabia, the critical swing producer that has spent billions of dollars to boost production capacity and is being lobbied heavily by the U.S. administration to keep the taps open.

“There is only one country that really counts and that country has not spoken yet, and that's the Saudis,” energy analyst Paul Ting said Wednesday.

Posted by Orrin Judd at October 12, 2006 8:50 AM
Comments

With prices over $50/bbl, they're making more money than ever (discounting the Katrina, Venezuela, Nigeria, Iran war scare/anarchy period). They need the money.

Posted by: ed at October 12, 2006 1:02 PM
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